Underlying Aggregates Sample Clauses

Underlying Aggregates. Underwriters are expected to understand how the underlying aggregates apply and should not bind coverage unless they have obtained the actual forms being used on the scheduled underlying (see Binding Requirements below). Underwriters must fully understand all underlying coverage by reviewing underlying (sample) policy forms, rather than relying on broker representations. • Attachment Point The CLD will have $15 million in gross capacity, and will generally deploy this capacity with a balance between attachment point and limits as follows: Bowhead Limit Attachment Point Notes $1M to $4M $1m/$2m/$2m or$2m/$4m/$4m primary NY/FL should have minimum $5M attachment point. $5M $5M $10M $5 - $10M $15M $25M Look for ventilation and shared layer opportunities Our objective with per occurrence limits is to minimize them in regard to lower attachment points. The attachment point chart above defines the optimal posture to take in the marketplace but is not a comprehensive requirement. A specific risk situation may warrant a different approach and should be round-tabled with colleagues and CLD Leadership. Treatment of the defense obligation is an important consideration in determining an appropriate attachment point. Whether underlying policies are written on a “defense within limits” or “defense outside limits” basis can have a material impact on per occurrence and aggregate erosion and exhaustion of underlying limits. Underwriters should be seeking a higher attachment point when writing over a “defense within limits” policy with full consideration to the potential for significant defense costs. Consultation with CLD Leadership is required when writing excess of a “defense within limits” policy at any attachment point. A disciplined approach to limit and attachment point will optimize profitability while providing needed capacity and underwriting responsiveness in a distressed marketplace. Underwriters’ LOAs will specify limit and attachment point criteria. Policy Period In general, the CLD will write policies with terms of 12 months (plus odd time, not to exceed 18 months in total). However, multiyear policies for projects may be written, subject to approval by Product Manager. Our reinsurance treaty specifies allowable policy terms. Underlying Carrier Solvency • We will not attach over any company that does not maintain an A.M. Best rating of A- (VIII). • Any company with an A- rating with negative outlook must be approved by Division Leadership. If approved, we will...